UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

           [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000

                                       OR

            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                For the transition period from _______ to _______
                        Commission file number: 333-58351

                             AREMISSOFT CORPORATION
                        ---------------------------------
             (Exact name of Registrant as specified in its charter)

                            DELAWARE 7372 68-0413929
  (STATE OR OTHER JURISDICTION OF (PRIMARY STANDARD INDUSTRIAL (I.R.S. EMPLOYER
     INCORPORATION OR ORGANIZATION) CLASSIFICATION CODE) IDENTIFICATION NO.)


                             AREMISSOFT CORPORATION
                               SENTRY OFFICE PLAZA
                          216 HADDON AVENUE, SUITE 607
                           WESTMONT, NEW JERSEY 08108
                                  856-869-0770
          (ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING
             AREA CODE, OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
                            ------------------------
                                 ROYS POYIADJIS
                       PRESIDENT & CHIEF EXECUTIVE OFFICER
                             AREMISSOFT CORPORATION
                               SENTRY OFFICE PLAZA
                          216 HADDON AVENUE, SUITE 607
                           WESTMONT, NEW JERSEY 08108
                                  856-869-0770
            (NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER,
                              INCLUDING AREA CODE)
                            ------------------------

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  Registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

Yes   [ X ]        No [      ]

The number of shares outstanding of the Registrant's Common Stock on October 17,
2000 was 16,048,733 shares.


<PAGE> 2


                             AREMISSOFT CORPORATION

                                      INDEX



PART I - FINANCIAL INFORMATION                                              PAGE

Item 1.   Financial Statements:

          Consolidated Balance Sheets as of                                    3
          September 30, 2000 and December 31, 1999

          Consolidated Statements of Operations                                5
          for the three-months and nine-months ended
          September 30, 2000 and September 30, 1999

          Consolidated Statements of Cash Flows                                6
          for the nine-months ended September 30, 2000
          and September 30, 1999

          Notes to Interim Consolidated Financial Statements                   7


Item 2.   Management's Discussion and Analysis of Financial                   11
               Condition and Results of Operations


Item 3:    Quantitative and Qualitative disclosures about market risk         16


PART  II - OTHER INFORMATION

Item 1--Legal Proceedings                                                     17

Item 2--Changes in Securities and Use of Proceeds                             17

Item 3--Defaults upon Senior Securities                                       17

Item 4--of Matters to a Vote of Security Holders                   17

Item 5--Other Information                                                     17

Item 6--Exhibits and Reports on Form 8-K                                      18

SIGNATURES                                                                    19


<PAGE> 3



PART 1-FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

                             AREMISSOFT CORPORATION
                           CONSOLIDATED BALANCE SHEETS
                      (IN THOUSANDS, EXCEPT PER SHARE DATA)



                                            DECEMBER 31   SEPTEMBER 30
              ASSETS                               1999           2000
                                            -----------   ------------
                                                           (unaudited)
Current assets
Cash and cash equivalents                       $13,386        $35,915
Accounts receivable, less
  allowances for doubtful accounts
  of $507 at Dec 31,1999 and
  September 30, 2000                             18,115         27,993

Accounts receivable - disposition proceeds        2,592              -
Other receivables                                   705            932
Inventory                                         1,603          1,168
Deposits paid on services and
  maintenance contracts                           3,712          3,752
Prepaid expenses and other assets                 2,423          2,955

Total Current Assets                             42,536         72,715
Investments                                       1,803          1,652
Property and equipment, net                       1,847          2,035
Purchased and developed software, net
   of accumulated Amortization of $5,893
   and $6,115 at Dec. 31,1999 and
   September 30, 2000 respectively.                 948            726
Intangible assets, net of accumulated
   amortization of $11,534 and $14,987
   at Dec 31, 1999 and September 30, 2000
   respectively                                  13,810         10,357


Total assets                                     60,944         87,485

        LIABILITIES AND STOCKHOLDER'S EQUITY

Current liabilities
Accounts payable                                  6,910          2,812
Accrued payroll taxes                               574          1,102
Accrued value added taxes                         1,055            593
Accrued income taxes                              6,572         10,385
Current portion of capital lease obligations         24             10
Other accrued expenses                            2,371          1,642
Deferred revenue                                  7,190          5,900

Total Current liabilities                        24,696         22,444
Capital lease obligations,
   less current portion                               2             83

Total  liabilities                               24,698         22,527

Stockholders' equity
Series-A convertible preferred stock,
   par value $0.001; authorized 2,100
   shares; and no shares issued and
   outstanding liquidating preference
   at par value

<PAGE> 4



                                   AREMISSOFT CORPORATION
                                 CONSOLIDATED BALANCE SHEETS
                            (IN THOUSANDS, EXCEPT PER SHARE DATA)



                                              DECEMBER 31   SEPTEMBER 30

                                                     1999           2000
                                              -----------   ------------
                                                             (unaudited)


Series-B convertible preferred stock,
   par value $0.001; authorized 3,500
   shares ; no shares issued and
   outstanding, liquidating preference
   at par value
Common stock,  par value $0.001;  authorized
   85,000  shares;  15,193 and 15,477 shares
   issued and outstanding at Dec.31, 1999
   and September 30, 2000, respectively                15             16
Additional paid-in capital                         57,325         71,261
Accumulated deficit                               (18,921)        (3,171)
Accumulated other comprehensive income             (2,173)        (3,148)
Total stockholders' equity                         36,246         64,958

Total liabilities and stockholders'
   equity (deficit)                                60,944         87,485














   The accompanying notes are an integral part of these  consolidated  financial
statements.



<PAGE> 5





                                               AREMISSOFT CORPORATION
                                        CONSOLIDATED STATEMENTS OF OPERATIONS
                                        (IN THOUSANDS, EXCEPT PER SHARE DATA)
                                                      (UNAUDITED)
<TABLE>
<S>                                        <C>              <C>            <C>            <C>

                                           For three months ended          For nine months ended
                                                 September 30                   September 30
                                             1999            2000            1999           2000
                                 -           ----            ----            ----           ----

Revenues
  Software Licenses                        11,071          17,577          25,321         44,170
  Maintenance and Services                  8,486          12,909          21,350         32,481
  Hardware and Other                          721           1,235           3,461          3,594

Total revenues                             20,278          31,721          50,132         80,245

Cost of revenues
  Software Licenses                         1,373           1,911           3,150          4,713
  Maintenance and Services                  2,732           3,735           6,778          9,805
  Hardware and Other                          566             859           2,487          2,686
  Amortization of purchased
software
   and capitalized software
development
   costs                                       58              72             182            222

Total cost of revenues                      4,729           6,577          12,597         17,426

Gross profit                               15,549          25,144          37,535         62,819

Operating Expenses
   Sales and marketing                      7,329          10,725          17,968         28,164
   Research and development                 1,205           2,371           3,866          6,480
   General and administrative               1,773           2,558           4,457          7,869
   Amortization of intangible
assets                                         88           1,151             264          3,453

Total operating expenses                   10,395          16,805          26,555         45,966

Profit from operations                      5,154           8,339          10,980         16,853
Other income (expense)
  Interest income (expense), net             -290             307          -1,138            576
  Gain on disposition, net                      -           2,192               -          2,192
   Non-operating income                         -               -               -            131
Income before income taxes                  4,864          10,838           9,842         19,752
  Income tax expense                        1,605           1,974           3,247          4,002

Net Income                                  3,259           8,864           6,595         15,750

Basic net income per share                   0.24            0.57            0.55           1.03
Diluted net income per share                 0.23            0.51            0.54           0.91
Basic weighted average shares
outstanding                                13,530          15,477          12,038         15,326
Diluted weighted average shares
outstanding                                14,200          17,345          12,335         17,227

</TABLE>

    The accompanying notes are an integral part of these consolidated  financial
statements.


<PAGE> 6
                                      AREMISSOFT CORPORATION
                              CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          (IN THOUSANDS)
                                            (UNAUDITED)
<TABLE>
<S>                                                                      <C>           <C>

                                                                   For nine months ended September 30

                                                                           1999           2000
                                                                           ----           ----

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                                6,595         15,750
Adjustments to reconcile net income to net cash provided by
  operating activities:
Depreciation                                                                979            487
Amortization and write-off of capitalized software and
Intangible assets                                                           446          3,675
Foreign currency translation                                                  -            151
Gain on disposition, net                                                      -         (2,192)

Changes in assets and liabilities (net of disposition):
Accounts receivable                                                      (1,580)       (10,470)
Accounts receivable -disposition proceeds                                     -          2,592
Other receivables                                                          (553)          (227)
Inventory                                                                    76            302
Deposits paid on service and maintenance contract                         2,586            816
Prepaid expenses and other assets                                        (1,078)          (643)
Accounts payable                                                           (807)        (4,098)
Deferred revenue                                                         (1,900)        (1,290)
Accrued taxes payable                                                     1,837          3,879
Other accrued expenses                                                   (2,491)          (714)

Net cash provided by operating activities                                 4,110          8,018

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment                                      (1,060)          (848)
Proceeds from disposition                                                     -          3,330
Net cash provided (used) by investing activities                         (1,060)         2,482

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants and employee stock options                              937
Net proceeds from issuance of stock                                      12,868         12,000
Principal repayments of long-term borrowings                             (7,622)             -
Loan from related party                                                  (1,793)             -
Principal payments of capital lease obligations-net                         (26)            67

Net cash provided by financing activities                                 3,427         13,004

Effect of foreign currency exchange rates on cash and cash
equivalents                                                                 (89)          (975)
Net increase(decrease) in cash & cash equivalents                         6,388         22,529
Cash and cash equivalents, at beginning of period                           149         13,386
Cash and cash equivalents, at end of period                               6,537         35,915
Supplemental disclosure:
Interest  paid                                                            1,138              -
</TABLE>

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.



<PAGE> 7


         NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1.      BASIS OF PRESENTATION

The accompanying  unaudited  consolidated financial statements and notes thereto
have been prepared in accordance with generally accepted  accounting  principles
for interim  financial  information and pursuant to the rules and regulations of
the Securities and Exchange  Commission.  Interim  results of operations for the
three-month  and nine-month  period ended September 30, 2000 are not necessarily
indicative of operating results for the full fiscal year.

In the opinion of management,  all  adjustments  consisting of normal  recurring
entries  necessary  for the  fair  presentation  of the  consolidated  financial
position,  results of  operations,  and  changes  in cash flows for the  periods
presented  have been  included.  The  preparation  of  financial  statements  in
conformity with generally accepted accounting  principles requires management to
make estimates and  assumptions  that affect the reported  amounts of assets and
liabilities at the date of the financial  statements and the reported amounts of
revenues and expenses during the reporting  period.  Actual results could differ
from those estimates.

The  balance  sheet at  December  31,  1999 has been  derived  from the  audited
financial  statements  at that date but does not include all of the  information
and footnotes required by generally accepted accounting  principles for complete
financial statements.


2.      FOREIGN CURRENCY TRANSLATION

The functional  currency of the Company and its United Kingdom  subsidiaries  is
the British pound. The functional currencies of the other subsidiaries are their
local currencies.

For reporting purposes,  the financial statements are presented in United States
dollars and in accordance  with Statement of Financial  Accounting  Standard No.
52,  "Foreign  Currency  Translation".   The  consolidated  balance  sheets  are
translated  into United States dollars at the exchange  rates  prevailing at the
balance  sheet  dates and the  statements  of  operations  and cash flows at the
average  rates  for the  relevant  periods.  Gains  and  losses  resulting  from
translation  are  included as a component  of  accumulated  other  comprehensive
income (loss).

Net gains and losses resulting from foreign  exchange  transactions are included
in the consolidated statements of operations.


3.      NET INCOME PER SHARE

The following table sets forth the computation of basic and diluted earnings per
share (in thousands, except per share data):

                              Three months ended        Nine months ended
                                    September                September

                                 1999       2000         1999        2000
                                 ----       ----         ----        ----

  Numerator used for basic      3,259      8,864        6,595      15,750
     earnings per share

  Weighted average shares      13,530     15,477       12,038      15,326
     outstanding

  Basic Earnings per share      $0.24      $0.57        $0.55       $1.03



<PAGE> 8

<TABLE>
<S>                                            <C>         <C>          <C>         <C>


                                               Three months ended        Nine months ended
                                                    September                September
                                                  1999       2000         1999        2000
                                                ------     ------       ------      ------

Numerator used for diluted earning per share     3,269      8,864        6,595      15,750

Denominator for diluted earnings per share:
Weighted average shares outstanding             13,530     15,477       12,038      15,326
  Effect of dilutive securities:
     Options and Warrants                          670      1,868          297       1,901

Totals                                          14,200     17,345       12,335      17,227

Diluted Earnings per share                       $0.23      $0.51        $0.54       $0.91

</TABLE>

4.      COMPREHENSIVE INCOME

The Company follows the provisions of the Financial  Accounting  Standards Board
issued SFAS No. 130,  "Reporting  Comprehensive  Income"  ("SFAS No. 130") which
establishes  standards for the reporting and display of comprehensive income and
its components in a full set of general-purpose  financial statements.  Included
within  accumulated other  comprehensive  income are the cumulative  amounts for
foreign currency translation adjustments.

comprehensive  income for the nine-months  ended September 30, 1999 and 2000 are
as follows
                                                       (in thousands)
                                                             1999         2000
                                                             ----         ----

     Net income                                           $ 6,595     $ 15,750
     Foreign currency translation adjustments                 (89)        (975)
                                                          --------    ---------
     Comprehensive income                                 $ 6,506     $ 14,775
                                                          --------    ---------


5.      SEGMENT REPORTING INFORMATION

The Company has adopted SFAS 131 "Disclosure about Segments of an Enterprise and
Related  Information"  1999,  which changes the way the Company  reports certain
information about its operating segments.

The  Company  develops,   markets,   implements  and  supports   enterprise-wide
applications  software  targeted  at  mid-sized   organizations  mainly  in  the
manufacturing,  healthcare, hospitality, and construction industries. Management
considers  each  industry  to  be  a  reportable  segment,  with  each  industry
representing a strategic  business that offers  products and services to various
customers.  These  industries  are  managed  separately  because  each  requires
different product and marketing strategies.



<PAGE> 9


Within each  industry,  the Company has adopted a tailored  sales and  marketing
strategy.  This strategy includes  advertisements in leading trade publications,
participation  in trade shows and sponsorship of user groups.  In addition,  the
Company has developed corporate sales and marketing materials as well as general
financial and technical  materials that are distributed to each of the Company's
subsidiaries  for  inclusion  in their  sales  materials,  thereby  promoting  a
consistent  portrayal of the Company's  image and products.  The Company markets
its products  primarily  through a direct sales force in each of the industries.
In the manufacturing and hospitality  industries,  the Company also relies, to a
limited extent, on distributors to sell the Company's products.

The accounting policies adopted by each industry are the same as those described
in  the  summary  of  significant  accounting  policies.   Management  evaluates
performance  based on profit/(loss)  from operations  before interest and income
taxes.

Summarized financial information concerning the Company's reportable segments is
shown in the following table.

<TABLE>
<S>                           <C>             <C>         <C>          <C>           <C>      <C>

                              MANUFACTURING   HEALTHCARE  HOSPITALITY  CONSTRUCTION  OTHER    TOTAL
                              -------------   ----------  -----------  ------------  -----    -----
Segmental analysis for the
nine months ended
September 30, 2000

Revenues from external
customers                         28,291        18,407      22,547         6,345     4,655   80,245
Depreciation and amortization      1,058           878         960           223     1,043    4,162
Profit (loss) from operations      7,997         2,595       4,516         1,263       482   16,853
Total Segment assets              39,761        16,624      23,901         4,349     2,850   87,485

</TABLE>

<TABLE>
<S>                           <C>             <C>         <C>          <C>           <C>      <C>

                              MANUFACTURING   HEALTHCARE  HOSPITALITY  CONSTRUCTION  OTHER    TOTAL
                              -------------   ----------  -----------  ------------  -----    -----
Segmental analysis for the
nine months ended
September 30, 1999

Revenues from external
  customers                       16,461        13,842      13,199         3,715    2,915    50,132
Depreciation and
  amortization                       280           294         284            64      503     1,425
Profit (loss) from
  operations                       5,713         2,042       2,984           552     -311    10,980
Total Segment assets              15,089         8,237       8,381         1,547    1,282    34,536

</TABLE>

The following table  represents  revenue by country based on country of customer
domicile and long-lived assets by country based on the location of the assets.

                            Revenues                      Long-Lived Assets
                  Sep. 30, 1999  Sep. 30, 2000      Sep. 30, 1999  Sep. 30, 2000
                  -------------  -------------      -------------  -------------

  United Kingdom     28,581         25,940              1,833          1,774
  Rest of Europe     11,646         29,052                605            371
  United States       1,972          2,534                117             84
  Asia                1,872         11,044                463         12,530
  Rest of World       6,061         11,675                 12             11

                     50,132         80,245              3,030         14,770




<PAGE> 10


6.      INVESTMENTS

Investments  comprise an  approximate  8.93% interest in LK  GlobalSoft.com,  an
entity whose common  stock began  trading on the Cyprus stock  exchange in April
2000. The Company's ability to liquidate this investment and realize all profits
on a short-term basis is restricted due to certain  governmental  regulations in
Cyprus. Management has determined that this investment does meet the criteria of
a marketable  equity  security as defined by  Statement of Financial  Accounting
Standards  No.  115  Accounting  for  Certain  Investments  in Debt  and  Equity
Securities,  and, therefore,  records it on the cost basis of accounting.  Based
upon the  trading  price of  Global's  common  stock on the Cyprus  exchange  at
September  30, 2000,  the value of the  Company's  investment  approximated  $98
million.


7.      DISPOSITION

On  September  6, 2000,  the Company  sold its UK  Healthcare  business to Torex
Health Limited ("Torex"), a UK based information technology solution provider to
the healthcare and retail  markets.  The transaction was structured as a sale of
certain assets and the  assumption of certain  liabilities in exchange for a net
cash consideration of $3.3 million.  Under the agreement the Company transferred
24 UK Healthcare  employees to Torex and retained all of its Healthcare software
intellectual  property,  licensing  it to  Torex  for  the  operation  of the UK
Healthcare business.  The transaction failed to meet the "significance" test set
forth in Instruction 4 of Item 2 of Form 8-K.

In connection with this transaction,  the Company realized a gain on disposition
of $2.2 million.  The gain  represents the difference  between the selling price
and the net assets disposed of plus disposition related expenses.

The  operations of the U.K.  Healthcare  business  included in the  accompanying
interim financial statements are not material.

8.      SUBSEQUENT EVENT

On October 18, 2000, the Company completed the purchase of assets and assumption
of certain  liabilities in connection  with the acquisition of the United States
hospitality  business of Verso Technologies,  Inc. ("Verso"),  formerly known as
Eltrax  Systems,  Inc. In addition,  the Company  completed the  acquisition  of
Verso's  Norwegian  hospitality  business and signed an agreement to acquire the
remainder  of  Verso's  international   hospitality  business.   Total  purchase
consideration is expected to approximate $10 million.




<PAGE> 11


Item 2: MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private
Securities Litigation Reform Act of 1995. The following Management's  Discussion
and Analysis of Financial  Condition and Results of Operations should be read in
conjunction with the Notes to the Condensed  Consolidated  Financial  Statements
included  in  Part  I,  Item  1, of this  report.  All  statements,  other  than
historical facts,  included in the following  discussion regarding our financial
position,  business strategy,  and plans of our management for future operations
are  "forward-looking  statements."  These  statements are based on management's
beliefs and assumptions,  and on information  currently available to management.
Forward looking statements include,  but are not limited to, statements in which
words such as "expect",  "anticipate",  "intend", "plan", "believe", "estimate",
"consider", or similar expressions are used.  Forward-looking statements are not
guarantees  of  future  performance.  They  involve  risks,  uncertainties,  and
assumptions, including the risks discussed under Item 3 below and in the section
entitled "Risk Factors" in the prospectus,  and supplements to our  registration
statement on Form S-3,  SEC File No.  333-31768,  all of which are  incorporated
herein by  reference.  Our  actual  results  and  stockholder  values may differ
materially  from  those  anticipated  or  expressed  in  these   forward-looking
statements. Many of the factors that will determine these results and values are
beyond our ability to control or predict.  We caution readers of this report not
to put  undue  reliance  on  any  forward-looking  statement.  We  undertake  no
obligation to publicly  update these forward  looking  statements,  whether as a
result of new information, future events or otherwise.


OVERVIEW

We develop,  market, implement and support enterprise-wide software applications
primarily  for  mid-sized   organizations  in  the  manufacturing,   healthcare,
hospitality  and  construction   industries.   Our  fully-integrated   suite  of
Internet-enabled   products   allows  our   customers   to  manage  and  execute
mission-critical  functions  within their  organization,  including  accounting,
purchasing,  manufacturing,  customer  service,  and  sales and  marketing.  The
modular  design  of  our  products  enables  us  to  provide  customers  with  a
cost-effective  scalable solution which can be easily  implemented.  We focus on
mid-sized  organizations  with  annual  revenues  of less than $200  million  to
capitalize on a market we believe is receptive to our  cost-effective  solutions
and shorter  implementation  periods.  As of September 30, 2000, we licensed our
software  applications to more than 6,000 customers in over twenty countries and
had 680 full time employees.

Our software  applications  use our internally  developed  three-tiered,  object
oriented  software  architecture,  which we call the Aremis  architecture.  This
architecture   enables   us  to   develop   software   solutions   rapidly   and
cost-effectively  by taking advantage of the common requirements of customers in
our target markets.  In addition,  we believe that, with 212 developers based in
our  facilities  in  India,  we have  established  a  cost-effective  model  for
implementing, supporting and enhancing our software applications

In the past six years,  we have  experienced  rapid growth,  both internally and
through  acquisitions,  with  revenues  increasing  from $6.4 million in 1994 to
$73.4  million  in 1999.  During  this  period,  we  successfully  acquired  and
integrated the operations of eleven businesses, which were principally operating
in the  United  Kingdom.  In each  acquisition,  we sought  to reduce  expenses,
rejuvenate  the existing  products of the acquired  business and  transition the
customers  to  products  that  utilize  our Aremis  Architecture.  Our  software
development and support  facility in India provides us access to  highly-skilled
technical  personnel who are responsible for rejuvenating the acquired  products
and developing new products in a cost-effective manner.



<PAGE> 12


Our  objective  is to be a  leading  provider  of  enterprise-wide  applications
software  in  the  manufacturing,   healthcare,   hospitality  and  construction
industries.  Our  strategy  for  achieving  this  objective  includes  targeting
mid-sized  organizations,  including  divisions  and  business  units of  larger
companies,  focusing on strategic markets,  leveraging our cost-efficient  India
operations, capitalizing on our investment in the Aremis Architecture, expanding
our marketing,  sales,  support and service  capabilities and acquiring  related
software businesses, products or technologies.


RESULTS OF OPERATIONS

Revenues

Total  revenues  increased  56.4% to $31.7  million for the  three-months  ended
September 30, 2000 from $20.3 million for the  three-months  ended September 30,
1999. For the nine-months  ended September 30, 2000, the total revenue increased
60.1% to $80.2 million from $50.1 million during the comparable  period in 1999.
This  increase  was due to higher  software  license  revenues as a result of an
increase in the sale of higher margin licenses,  and associated  maintenance and
service  contract  revenues  and  also  the  effect  of  additional  revenue  of
e-nnovations.com  of $ 1.5 million and $4.3  million  for the  three-months  and
nine-months  ended  September  30,  2000.  The  effect  of the  e-nnovations.com
acquisition on revenues is mainly  reflected in the nine-months  ended September
30, 2000 since the  acquisition  of  e-nnovations.com  was  recorded in December
1999.

Software license revenues  increased 58.8% to $17.6 million for the three-months
ended September 30, 2000 from $11.1 million for the three-months ended September
30, 1999. For the  nine-months  ended  September 30, 2000, the software  license
revenue  increased  74.4%  to  $44.2  million  from  $25.3  million  during  the
comparable  period in 1999.  This increase is primarily due to the growth in the
number of  installed  customers,  increased  sales of  licenses  for  Aremis 4.0
products,  and price  increases.  As a  percentage  of total  revenues,  license
revenues  increased to 55.4% for the three-months  ended September 30, 2000 from
54.6% for the  period  ended  September  30,  1999.  For the  nine-months  ended
September 30, 2000 as a percentage of total revenue,  license revenue  increased
to 55.0% from 50.5% during the comparable period in 1999.

Maintenance and service contract  revenues  increased 52.1% to $12.9 million for
the three-months ended September 30, 2000 from $8.5 million for the three-months
ended  September 30, 1999.  For the  nine-months  ended  September 30, 2000, the
maintenance  revenue  increased 52.1% to $32.5 million from $21.4 million during
the comparable period in 1999. This increase is primarily due to the increase in
the number of installed  customers and the growth in software license  revenues.
As a percentage of total  revenues,  maintenance and service  contract  revenues
decreased to 40.7% for three-months  ended September 30, 2000 from 41.9% for the
period ended September 30, 1999. For the nine-months ended September 30, 2000 as
a percentage of total revenue, maintenance revenue decreased to 40.5% from 42.6%
during the comparable period in 1999.

Hardware  and  other  revenues   increased  71.3%  to  $  1.2  million  for  the
three-months  ended  September  30, 2000 from $0.7 million for the  three-months
ended  September 30, 1999.  For the  nine-months  ended  September 30, 2000, the
hardware  and other  revenue  increased  3.9% to $ 3.6 million from $3.5 million
during  the  comparable  period  in 1999.  As a  percentage  of total  revenues,
hardware  and  other  revenues  increased  to 3.9%  for the  three-months  ended
September 30, 2000 from 3.6% for the three-months  ended September 30, 1999. For
the  nine-months  ended  September  30, 2000,  as a percentage  of total revenue
hardware and other revenue decreased to 4.5% from 6.9% for the comparable period
in 1999,  reflecting our strategy to reduce the sale and  installation  of lower
margin third-party hardware.




<PAGE> 13


Cost of Revenues

Cost of revenues  increased  39.1 % to $6.6 million for the  three-months  ended
September 30, 2000 from $4.8 million for the  three-months  ended  September 30,
1999. For the  nine-months  ended  September 30, 2000, the total cost of revenue
increased 38.3% to $17.4 million from $12.6 million during the comparable period
in 1999. As a percentage of total revenues,  cost of revenues decreased to 20.7%
for the  three-months  ended September 30, 2000 from 23.3% for the  three-months
ended  September 30, 1999. For the  nine-months  ended  September 30, 2000, as a
percentage  of total  revenue,  cost of  revenue  decreased  to 21.7% from 25.1%
during the comparable period in 1999. The effect of e-nnovations.com on the cost
of revenue is $ 0.5 million for the  three-months  ended  September 30, 2000 and
$1.3 million for the nine-months ended September 30, 2000.

Software license cost increased 39.2% to $1.9 million for the three-months ended
September 30, 2000 from $1.4 million for the  three-months  ended  September 30,
1999. For the nine-months  ended  September 30, 2000, the software  license cost
increased  49.6% to $4.7 million from $3.2 million during the comparable  period
in 1999. This increase is primarily due to the growth in the number of installed
customers, increased sales of licenses for the Company's Aremis 4.0 products. As
a percentage of total revenues, license cost decreased to 6.0% from 6.8% for the
period ended September 30, 1999. For the  nine-months  ended September 30, 2000,
as a  percentage  of total  revenue,  license  cost  decreased to 5.9% from 6.3%
during the comparable period in 1999.

Maintenance  and service  contract cost increased  36.7% to $3.7 million for the
three-months  ended  September  30, 2000 from $2.7 million for the  three-months
ended  September 30, 1999.  For the  nine-months  ended  September 30, 2000, the
maintenance and service  contract cost increased 44.7% to $9.8 million from $6.8
million during the comparable period in 1999. This is due to the increase in the
number of installed customers and the growth in software license revenues.  As a
percentage of total revenues, maintenance and service contract cost decreased to
11.8% for  three-months  ended  September 30, 2000 from 13.5% for 1999.  For the
nine-months  ended  September  30,  2000,  as a  percentage  of  total  revenue,
maintenance  and service  contract cost decreased to 12.2% from 13.5% during the
comparable period in 1999.

Hardware and other cost  increased  51.8 % to $0.9 million for the  three-months
ended September 30, 2000 from $0.6 million for the three-months  ended September
30, 1999. For the  nine-months  ended September 30, 2000, the hardware and other
cost  increased  8.0% to $2.7 million from $2.5  million  during the  comparable
period in 1999.  As a  percentage  of total  revenues,  hardware  and other cost
decreased to 2.7% for the  three-months  ended  September 30, 2000 from 2.8% for
the three-months  ended September 30, 1999. For the nine-months  ended September
30, 2000, as a percentage of total revenue, hardware and other cost decreased to
3.4% from 5.0% during the comparable  period in 1999  reflecting our strategy to
reduce the sale and installation of lower margin third-party hardware.


Sales and Marketing

Sales and Marketing  expense consist  primarily of expenses related to sales and
marketing  personnel,  advertising,  promotion,  trade shows  participation  and
public relations.

Our  sales and  marketing  expenses  increased  46.3% to $10.7  million  for the
three-months  ended  September  30, 2000 from $7.3 million for the  three-months
ended  September 30, 1999.  For the  nine-months  ended  September 30, 2000, the
sales and  marketing  cost  increased  56.7% to $28.2 million from $18.0 million
during the  comparable  period in 1999,  primarily due to the expansion of sales
and marketing activities principally in the United States, Asia and Europe. As a
percentage of total revenues,  sales and marketing  expenses  decreased to 33.8%
for three-months ended September 30, 2000, from 36.1% for the three-months ended
September  30,  1999.  For  the  nine-months  ended  September  30,  2000,  as a
percentage of total  revenue,  sales and marketing  cost decreased to 35.1% from
35.8%  during  the  comparable  period  in  1999,  primarily  due  to  increased
efficiencies in our sales and marketing operations.

<PAGE> 14

Research and Development

Our research and  development  expenses  increased 96.8% to $2.4 million for the
period ended  September 30, 2000 from $ 1.2 million for the  three-months  ended
September 30, 1999. For the  nine-months  ended September 30, 2000, the research
and  development  cost increased  67.6% to $6.5 million from $3.9 million during
the comparable  period in 1999. As a percentage of total revenues,  research and
development  expenses increased to 7.5% for the three-months ended September 30,
2000  from  5.9%  for  the  three-months  ended  September  30,  1999.  For  the
nine-months ended September 30, 2000, as a percentage of total revenue, research
and development cost increased to 8.1% from 7.7% during the comparable period in
1999.


General and Administrative

General and  administrative  expenses  increased  44.3% to $2.6  million for the
three-months  ended  September  30, 2000 from $1.8 million for the  three-months
ended  September 30, 1999.  For the  nine-months  ended  September 30, 2000, the
general and  administrative  expenses  increased 76.6% to $7.9 million from $4.5
million during the comparable period in 1999. As a percentage of total revenues,
general and administrative expenses decreased to 8.1% for the three-months ended
September 30, 2000 from 8.7% for the three-months  ended September 30, 1999. For
the  nine-months  ended  September 30, 2000,  as a percentage of total  revenue,
general  and  administrative  expenses  increased  to 9.8% from 8.9%  during the
comparable  period in 1999.  The  increase  was  primarily  due to  increase  in
operational and  geographical  activities  compared to the previous period and a
write off in 2nd quarter of $0.55  million in offering  expenses  related to our
follow-on  offering  which  has  been  indefinitely   postponed  due  to  market
conditions.


Amortization of Intangible Assets

Amortization of intangible assets increased to $1.2 million for the three-months
ended September 30, 2000 from  approximately  $88,000 for the three-months ended
September  30,  1999.  For  the  nine-months   ended  September  30,  2000,  the
amortization of intangible  assets increased to $3.5 million from  approximately
$264,000  during the comparable  period in 1999. The increase in amortization of
intangible  assets  is due to  the  goodwill  recorded  on  the  acquisition  of
e-nnovations.com in December 1999.


Net Interest Income Expense

Net interest  income  expense  reflects  interest on our credit  facilities,  as
reduced  by  interest  income on cash  balances.  Net  interest  income was $0.3
million  for the  three-months  ended  September  30, 2000 as compared to a $0.3
million net interest expense for the three-months  ended September 30, 1999. For
the  nine-months  ended  September  30, 2000,  the net interest  income was $0.6
million  as  compared  to a net  interest  expense  of $1.1  million  during the
comparable period in 1999.


Gain On Disposition

During the three months  ended  September  30, 2000,  we realized a $2.2 million
gain on the sale of our UK Healthcare division.




<PAGE> 15


Income Tax Provision

There is a provision for income taxes for the  three-months  ended September 30,
2000 of $2.0  million.  There was a provision  for income taxes for $1.6 million
for the  three-months  ended  September  30,  1999.  For the  nine-months  ended
September  30,  2000 there was a  provision  for income tax for $4.0  million as
compared to $3.2 million during the  comparable  period in 1999. The increase in
income taxes resulted from the increase in the Company's  profitability in 2000.
The company's effective tax rate was assumed at 20%.

Recoverability  of the deferred tax asset  derived  mainly from  operating  loss
carry  forwards in the United  Kingdom has been  reviewed at September 30, 2000,
and although certain  subsidiaries  generated  taxable income in the year ending
September 30, 2000,  we cannot assure you that the level of taxable  income will
be  sustained  at an adequate  level in the  appropriate  subsidiaries.  It must
therefore be considered  more likely than not that the deferred tax benefit will
not be recognized at this stage.


LIQUIDITY AND CAPITAL RESOURCES

We have funded our operations since inception primarily through borrowings under
bank credit  facilities,  private  placements  of equity  securities  and equity
contributions  by our  principal  stockholder.  In  September  2000,  we offered
474,871 shares of our common stock to Acqua Wellington  North American  Equities
Fund  Ltd.  The net  proceeds  received  by us from the sale of shares of common
stock was  approximately  $12 million.  As of September  30, 2000,  we had $35.9
million of cash and cash equivalents. We had a working capital surplus of $ 50.3
million as of September 30, 2000.

We believe that the existing  cash and cash  equivalents,  will be sufficient to
meet our working capital and currently planned expenditure  requirements for the
next  three  months.  We  may,  from  time to  time,  consider  acquisitions  of
complementary businesses, products or technologies, which may require additional
financing. In addition, continued growth in our business may, from time to time,
require additional  capital.  No assurances can be given that additional capital
will be  available  to us at such time or times as such  capital may be required
or, if available,  that it will be on commercially acceptable terms or would not
result in additional dilution to our stockholders.

We had an operating cash flow surplus of $8.0 million for the nine-months  ended
September  30,  2000  compared to a surplus of $4.1  million for the  comparable
period in 1999.  This  surplus  was  primarily  due to  operating  profits and a
decrease  in  accounts  receivable  -  disposition  proceeds  and an increase in
accrued  taxes  partially  offset  by  increase  in trade  accounts  receivable,
decrease  in accounts  payable  and  deferred  revenue.  Operating  cash flow is
affected by seasonality, among other factors.

Accounts receivable increased to $28.0 million for September 30, 2000 from $17.7
million for September 30, 1999.  Accounts receivable as at December 31, 1999 was
$ 18.1 million. The average days sales outstanding was approximately 81 days for
the both periods ending September 30, 2000 and September 30, 1999.

Accrued taxes increased from $6.1 million at September 30, 1999 to approximately
$12.1 million at September 30, 2000.  The increase was primarily due to increase
in income tax of company due to higher profits.

Net cash provided by investing activities was approximately $2.4 million for the
nine months ended  September 30, 2000 primarily  resulting from the $3.3 million
cash  proceeds  from our sale of the U.K.  healthcare  division  offset  by $0.9
million in purchases of property and equipment.

Net cash provided by financing  activities was  approximately  $13.0 million and
$3.4 million for the nine-months ended September 30, 2000 and September 30, 1999
respectively.  For the  nine-months  ended  September  30, 2000 cash provided by
financing  activities  resulted from  proceeds  received from the sale of common
stock and  exercise of  warrants  and  employee  stock  options and  increase in
capital lease obligations.

<PAGE> 16

On September 6, 2000,  we sold our UK healthcare  division to Torex,  a UK based
information  technology  solution provider to the healthcare and retail markets.
The transaction was structured as a sale of certain assets and the assumption of
certain  liabilities in exchange for a net cash  consideration  of $3.3 million.
This gain was offset by certain  acquisition  costs primarily  relating to stock
options  granted  to  certain  of  our  24  UK  healthcare  employees  who  were
transferred  to  Torex  as part of the  disposition.  In  connection  with  this
transaction, we realized a net gain on disposition of $2.2 million.

On October 18, 2000,  we  completed  the  purchase of assets and  assumption  of
certain  liabilities  in connection  with the  acquisition  of the United States
hospitality  business of Verso Technologies,  Inc. ("Verso"),  formerly known as
Eltrax  Systems,  Inc. In addition,  we  completed  the  acquisition  of Verso's
Norwegian  hospitality business and signed an agreement to acquire the remainder
of Verso's international  hospitality business. The total purchase consideration
is expected to approximate $10 million.


EURO CONVERSION

In  January  1999,  the Euro  was  introduced  as the  currency  of a number  of
participating  nations in the European Union. Although the United Kingdom is not
currently a participating nation, the introduction of the Euro raises conversion
issues for business  transacted  with  entities in  participating  nations.  Our
products  either include or have been upgraded to include the Euro and we do not
believe that the Euro conversion has had or will have a material  adverse effect
on our  business.  Because the critical  internal  systems have been modified to
accommodate a conversion to the Euro, we believe we are  adequately  prepared in
the event the United Kingdom converts to the Euro in the future.


Item 3:    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Foreign Currency Exchange Rates

A significant  portion of our business is conducted in currencies other than the
United States dollar.  As a result, we are subject to exposure from movements in
foreign  currency  exchange  rates.  We  do  not  currently  engage  in  hedging
transactions designed to manage currency fluctuation risks.


Interest Rate Sensitivity

Our exposure related to adverse movements in interest rates is primarily derived
from the variable rate on our credit  facilities.  Interest  rates on our credit
facilities range from either Sterling LIBOR plus 3% to Sterling LIBOR plus 4% or
the lending bank's base rate plus the applicable  margin.  Increases in Sterling
LIBOR result in increases in our interest expense. At September 30, 2000, we had
no borrowings outstanding under our credit facilities.




<PAGE> 17


PART II - OTHER INFORMATION


Item 1:    LEGAL PROCEEDINGS

None


Item 2:    CHANGES IN SECURITIES AND USE OF PROCEEDS.

We issued 474,871 shares of our common stock at $ 25.27 per share,  8,764 shares
at $ 8.56 per share in connection  with exercise of warrants and 172,267  shares
at $5.00 per share in  connection  with the exercise of employee  stock  options
during the  nine-months  ended  September  30, 2000.  Consequently,  we received
approximately $ 13.0 million.


Item 3:    DEFAULTS UPON SENIOR SECURITIES.

None


Item 4:    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None


Item 5:    OTHER INFORMATION

On  September  6,  2000,  we sold  our UK  healthcare  division  to  Torex.  The
transaction  was  structured as a sale of certain  assets and the  assumption of
certain  liabilities in exchange for a net cash  consideration  of $3.3 million.
Under the terms of the sale,  Torex  acquired  approximately  500 UK  healthcare
customers,  primarily physician groups and a perpetual license to the related UK
healthcare software.  We retained all of the intellectual property rights to the
software.


Item 6:    EXHIBITS AND REPORTS ON FORM 8-K

Exhibit        10.17  Agreement for the Sale and Purchase of Business and Assets
               between AremisSoft (UK) PLC and Torex Health Limited.

Exhibit 10.18  Agreement For The Purchase And Sale Of Assets  Between AremisSoft
               Corporation, a Delaware corporation,  as Purchaser,  Eltrax
               Systems, Inc., a Minnesota corporation,  and Eltrax Hospitality
               Group, Inc.,  a Georgia  corporation, as  Seller.

Exhibit  10.19 Agreement between  Acqua  Wellington  North  American  Equities
               Fund, Ltd. and AremisSoft Corporation, a Delaware corporation.



<PAGE> 18


                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                                           AREMISSOFT CORPORATION,
                                           a Delaware Corporation



Date:  _______________                     _______________________________
                                           Roys Poyiadjis
                                           President and Chief Executive Officer



Date:  _______________                     _______________________________
                                           Michael Tymvios
                                           Chief Financial Officer